Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:

Variable costs:

Direct materials $140

Direct labor 100

Manufacturing support 105

Marketing costs 55

Fixed costs:

Manufacturing support 175

Marketing costs 65

Total costs 640

Markup (50%) 320

Targeted selling price $960

For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order?

A.

$480

B.

$320

C.

$640

D.

$400